The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1887-12-15
PRESIDENTS MESSAGE.
Devoted to the Consideration OF
the Tariff and Surplus.
Urging the Necessity Of = Revision Of the
Revenue as the Only Remedy for .
Dangerous. EyiI-M.flsosls Suggest
cd by the Executive.
FUIL TEXT or THE MESSAGE.


Dangerous. EyiI-M.fliosls Suggest
ed by the Executive.
Full TEXT or TIE MESSAGE.
WASHINGTON, Dec G-The following Il
the full text OF President Cieveland's mes
sage, as read 10 both houses of Congress to-
day:
To THE CONGRESS OF THE UNITED STATES
You are confronted at the threshold OF your
legislative duties with condition OF the Ma
tional finances which imperatiyely demands i'm
mediate and careful consideration.
The amount OF money annually exacfed
through the operation Of present laws, from the
industries and necessities OF the people, largely
exceeds the sum necessary TO meet the expenses
Of the Government.
When we consider that the theory OF our IN.
stitutions guarantees TO every citizen the full
enjoyment OF all the fruits OF his industry and
enterprise. with only such deduction as may
be his share toward The careful and economical
maintenance OF the Government which pro-
fccts him. II is plain that the exaction OF more
than this Is indefcnsible extortion, and culpa-
bic betrayal OF American fairness and justice.
This wrong. inflicted upon those who
other wrongs. multiplies brood OF evil conse-
quences. The pubic treasury, which should
only exist as a conduit conveying the people
tribute TO is leg innate objects Of expenditure,
becomes boarding place Tor money neediessly
Withdrawn from trade and the peoples use,
thus Gripping our National energies. suspend
ing our country NeNelOpmenI, preventing III
yestmcnt In productive enterprises, threaten
ing financial disturbance and inviting schemes
OF public plumber This condition OF our
Treasury IS not ai.ogetacr new; new, ana s u mas mas
peoples representatives in Congress-, who
alone can apply a remedy. And yet the situa-
ton sun continues, with aggravated incidents.
more than ever presaging nnancial Commissions
and wide spread disaster.
II will not do TO neglect this situation be-
cause its dangers are not now palpably imml-
ant 'hov yIsf ha
certainly. and await the unforeseen, unex-
pected occasion when suddenly they will be
precipitaied upon US.
On the arh day OF June, 1885,. the excess Of
revenues over public expenditures, after COM
plying with the -aanual requirement OF the
Sinkingfund act, vas sl1.so9. 73a34: during the
year ended June 80, lN66, such excess amounted
TO 30, Ioo.5i5.A. and during the year ended
June 10, 1887, 1t reached the sum OF HS 56s, Sia-
81
The annual contributions to the sinking fund
during the three years above specified, amount
ting In the aggregate to slH.oas.1D9l, and de-
Quoted from the surplus AS stated were made
by calling In for that purpose outstanding per
cent. bonds OF the Government. During the SIX
months prior TO June 81, 1887 the surplus rev.
enue had grown SO large by repeated accumu.
lations, and IL was feared the withdrawal OF this
great sum of money needed by the people, would
affect the business of the country, that the sum
OF s79 l,0 of lsuch surplus was applied 10 the
o. 9.
were then payable at the option OF the Govern
ment. The precarious condition Of financial
affairs among the people stu needing relief is1
the remainder OF the per cent. bonds then
outstanding, amounting. with principal and in.
terest. TO the sum OF SlSsE. 500, were called in
and applied to the sinkins-fund contribution
for..the current fiscal year. Notwithstanding
these operations OF the Treasury Depart
ment, representations Of distress IL
but increased, and absolute peril seemed q
hand. In these circumstances the contribution
TO the sinking fund for the current fiscal veal
was at once completed by the expenditure o.
e27,6sa .ss3.55 in the purchase OF Government
bonds not yet cue being and A. per cent. inter
est, The premium pa d theron averaging about 3
latter. In addition to this the interest accruins
during the current year upon the outstanding
bonded indebtedness OF the Government was
some extent anticipated, and banks selected III
depositor es OF public money were permitted !,
somewhat increase their deposits.
While the expedents thus employed to re
lease TO the people the money lying idle in th'
treasury served ~ avert immediate danger, gu
surplus revenues have continued TO accumulate
the excess for the present year amount ng Of
the first day Of December TO s55,2 Z. 70l ~, an,
estimated 10 reach the sum OF sllaOJl,UO ol
the Goth Of June next, at which date il Is ex
pected that til S sum, added TO prior accumula
tons WILL swell the surplus in the Treasury i
ela0.00O.0D0
There seems to be no assurance that will
such withdrawal from use Of the people.
circulating medium our business may not II
the near future DC suD1eCIeu 10 the sam
distress which was quite lately produce.
from the same cause. And while the func
tions OF our National Treasury should b
few and simple. and while its best con
by its entire disconnection with pr
waite business interests, yet when, by perver
sion OF its purposes, ii idly holds money use
lessly sunsracied from the channels OF trade
there seems to be reason for the claim tina
some legitimate means should be devised b.
the Government TO restore in an emergency
its place among the people.
II such an emergency arises there now exist,
no clear ard undoubted executive power OF re
lief. Heretofore the redemption OF per cent
bonds, which were payable 1T the option OF thu
Government, has Afforded a means for the dis
bursemcnt Of the excess OF our revenues; bu
these bonds have all been retired, and there arr
no bonds oufstand ne the payment OF which vi
have the right 10 insist upon. The contribt
fion TO the sinking fund which furnishes the DC
casion for expenditure in the purchase OF bonds
has been already made for the current year s.
there is no outlet In that direction.
In the present state OF legislation the onl,
pretense OF any existing executive power to re
store at this time any part OF our surplus rev
enues TO the people by its expenditure. consists
in the supposition that the Secretary OF tn,
Treasury may enter the market and purchas
the bonds Of the Government not yet due, ct
rate OF premium to be agreed upon.
The only provision OF law from which such
power could be derived is found in an appropri
alton bill passed number OF years ago; and !
is subject to the suspicion that IL was intende,
as temporary and limited in its application. in
stead Of comforting continuing discretion an
authority. No condition ought to exist whicl
would justify the grant of power to a singh
Official, upon his ju, gment OF its necessity. 4
withhold from or release 10 the bushes
Of the people. In an unusual manner, none.
held in the Treasury, and thus affect, at hi
Will. the financial situation of the country: ant
II Is deemed wise to lodge in the Secretary o
the Treasury the authority in the present iunci
ure to purchase bonds, II should be plainl,
vested, and provided, as far as possible, witt
such checks and limitations as will define thi
of1cals right and discretion and at the sam
time relleys him from undue responsibility.
In considering the question OF PURCHASING
bonds as means OF restoring to circulation
ury. 1t should be borne in mind that premium
must OF course be paid upon such purchase
that there may be a large part Of these bond
held rs investments which can not be pun
chased ut any price. and that complication
among holders who are willing to sell may uu
reasonably enhance the cost OF such bonds i
the Government.
II has been suggested that the present bond
I'd debt might be refunded at a less rate OF In
ierest, and the difference between the old an
new securities paid In cash. thus finding US
for the surplus in the Treasury. The success
Of this plan, it is apparent, must depend upo
the volifion OF the holders OF the present isOnds
and il lis not entirely certain thnt the induce
lnent which must be offered them would n
suit in more financial benefit to the Govern
ment than the purchase OF bonds. while the 10,
ter proposition would reduce the principal OF tn
deOt Ov actual payment, instead OF extending II
The proposition to deposit the money held b
the Government in BANKS throughout the cour
try for use by the people is, it seems to mt
exceedingly Objectionable in principle. as e.
tablshng too close relationship between tn
operations OF the Government treasury an
the business OF the country, and too extensiv
aco-mingling of their money, thus fostering q
unnatural reliance in private business upo
public funds. II this scheme should be adopt
ed ii should only be done rs o temporar
expedient TO meet an urgent necessity. Legis
lative and executive effort should generally b
in the opposite direction, and should have ter
dency TO divorce. as much and as fast ca
safely be done the Treasury DEPARTING nj froE
private enterprise
or course II is not expected that unnecessar
and extrayagant appropriations will be mad
for the purpose OF avoiding the accumulate
of an excess Of revenue. Such expenditure
beside the decentralization OF all just conceY
tons OF public duty which it entails, stimulate
habit Of reckless improvidence not in til
least consistent with the mission of our peopl
Or the high and benchcent purposes OF on
Government
Ihave deemed IL my duty 70 thus bring TO tn
knowledge Of my countrymen, as well as to tn
attention Of their representatives charged wit
the responsibility Of legislative relief, tn
gravity Of our financial situation. The failur
OF the Congress heretofore to provide agains
the dangers which II was quite evident th